The international brokerage house Nuvama Institutional Equities has picked three stocks with a Buy call. These are Torrent Pharma, ACME Solar Industries, and DOMS Industries. Let’s explore them one by one.
Nuvama on Torrent Pharma: Hegde against US pharma’s structural changes
Nuvama has retained its ‘Buy’ call on the stock. The brokerage house believes that Torrent Pharma gives a hedge against potential structural changes in the US pharma. Torrent Pharma is expanding its sales force by 1,200 medical representatives (MRs) over FY24–26, which provides double-digit growth visibility for the next three–five years. This, along with the semaglutide launch in India and Brazil, can improve the product range. The US is set to see new launches and accelerate growth, while Germany is also expected to benefit from tender wins later in FY26. However, the brokerage cut the target price marginally to Rs 3,760 from Rs 3,810 due to weak Brazil business, which suffered due to currency depreciation and inventory de-stocking.
Nuvama on ACME Solar Holdings: Strong operating performance
Nuvama has retained its ‘Buy’ call on ACME Solar holdings with a target price of Rs 314. It said that ACME Solar delivered a strong operating performance as its Q4FY25 EBITDA came in at Rs 440 crore, which was up 2.2 times YoY, with a margin of 89.5% (versus 88% in Q3). The surge in EBITDA was due to better plant load factor and a full-quarter benefit of the capacity addition of 1.2GW. Nuvama expects ACME Solar can deliver a capacity growth rate of 40% and an operating cash flow of 57% over FY25–28. “We are tweaking estimates to account for the spill-over of 300MW solar to Q1FY26,” said the brokerage house.
Nuvama on DOMS Industries: Capacity to boost growth
Nuvama has maintained its ‘Buy’ rating on DOMS Industries as it sees the capacity to power growth. The company’s greenfield expansion is progressing well and is expected to be commissioned by Q3 FY26, while commercial production should start by the end of FY26 across multiple categories. However, the brokerage cut the target price to Rs 3,050 from Rs 3,386 as amortisation and employee expenses, and inclusion of Uniclan dragged margins lower by 150 bps YoY to 17.3%. DOMS Industries’ management continues to guide conservatively for FY26 revenue growth of 18–20% with an EBTIDA margin of 16.5–17.5%.